Jensen Huang: The market misjudges the threat of AI to traditional software companies

Nvidia (NVDA.US) reported a net profit growth of 94% year-on-year in the fourth fiscal quarter, reaching $42.96 billion, with adjusted earnings per share of $1.62, exceeding market expectations of $1.53. CEO Jensen Huang stated that the market has misjudged the threat of AI to traditional software companies.

Recently, the stock prices of software service providers have been severely impacted, as investors are increasingly concerned that the significant growth in AI hardware spending may not be sustainable, exacerbating worries about the industry.

Jensen Huang believes that the market has made a misjudgment, asserting that no one can provide better services than large software companies like ServiceNow (NOW.US), and he believes that software companies can develop deeply tailored and optimized AI agents, which the market will ultimately need to get the job done